Going out on a limb here . . . don't want to be accused of giving lame tech advice by all of the old, and mostly sleeping, dogs . . . but__
Best budget bang for the buck is:
1641 slip-in 87 mm piston and barrel set
1.25 to 1 ratio rockers
Kadron dual carbs
German 009 distributor (single vac advance if the Kadrons have the correct ports drilled in them)
Pertronix 1 ignition kit wl/Flame Thrower coil
Extractor exhaust (single quiet-pac makes the most HP but it might not fit your car.
For someone new to the game, you MUST check :
http://shoptalkforums.com/ and http://www.thesamba.com/vw/
both, for used and new parts at good prices and mountains of technical advice for all things VW.
Spend a weekend, look into every forum and section available, join both forums and ask every question that you have,
Luck,
TC